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sandensea

(21,529 posts)
Fri Jan 24, 2020, 11:30 PM Jan 2020

Probe launched in Argentina's National Bank over $292 million in bad loans to agro firm

The president of the National Bank of Argentina, Eduardo Hecker, announced an internal probe over bad loans made to politically-connected local soy giant Vicentín during his predecessor's tenure.

Some 18.4 billion pesos ($292 million) in export financing granted by the National Bank to Vicentín during former bank president Javier González Fraga's nearly three-year tenure is now in delinquent status.

The firm is delinquent on another $74 million to ten other local banks, and missed $350 million in year-end payments to farmers and other suppliers.

Vicentín, the country's sixth-largest agro-exporter, earned record revenues of $4.2 billion in 2018. But its $1 billion in total debts prompted it to declare bankruptcy on December 6 - four days before former President Mauricio Macri left office.

The firm was a top contributor to Macri's failed re-election campaign, donating $300,000 last August 6-8 alone.

Its CEO and chief shareholder, Alberto Padoán, 76, was vocally supportive of Macri's right-wing, 2015-19 tenure - which granted agro-exporters tax cuts worth over $1 billion annually.

Vicentín executives are currently in talks with Swiss-based commodity trading giant Glencore for a possible takeover. The two firms are partners in Renova, owner of Argentina’s largest soybean-crushing plant.

Hecker, appointed to the National Bank on December 23 by newly-elected President Alberto Fernández, refused Vicentín's request to restructure its debts, requiring the firm to sell assets to pay down its obligations before seeking relief.

"Vicentín was categorized as a prime borrower despite having missed payments for a year - nor did they present a payment plan," National Bank spokesman Sergio Resumil explained.

"There was a decision to not repay."

At: https://translate.google.com/translate?hl=en&tab=wT&sl=es&tl=en&u=https%3A%2F%2Fwww.pagina12.com.ar%2F243501-el-extrano-raid-de-vicentin-crecimiento-explosivo-con-fondos



Vicentín CEO Alberto Padoán (with moustache) in 2017 with former Argentine President Mauricio Macri (right) - of whom Padoán was a top backer.

Vicentín, which benefited from Macri's agro-export tax cuts, is delinquent on a total of $366 million borrowed from several Argentine banks - a figure similar to recent transfers made to Swiss accounts.

Amid a severe crisis, Macri was defeated for re-election - and the National Bank's new management is now demanding repayment from the soy exporter.
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Probe launched in Argentina's National Bank over $292 million in bad loans to agro firm (Original Post) sandensea Jan 2020 OP
What a catastrophe. Another example of one person becoming the conduit for total disaster. Judi Lynn Jan 2020 #1
This resembles the S&L scandal - especially politically-connected cases like Neil Bush's Silverado sandensea Jan 2020 #2
Neil Bush was treated with kid gloves in that scandal, a real shame. Judi Lynn Jan 2020 #3

Judi Lynn

(160,217 posts)
1. What a catastrophe. Another example of one person becoming the conduit for total disaster.
Sat Jan 25, 2020, 04:54 AM
Jan 2020

The 4 people in the photo are so slimy. Love the Macri photo. Looks more and more like himself. Downright ghoulish, isn't it?

The year should reveal so many dark discoveries. They tore a massive hole in Argentina's stability. They would all look far better wearing orange jumpsuits.

So glad Macri can't continue to wreck the country, and further degrade the standard of living for those who paid his salary, and enriched him and his sociopathic cronies.

sandensea

(21,529 posts)
2. This resembles the S&L scandal - especially politically-connected cases like Neil Bush's Silverado
Sat Jan 25, 2020, 12:14 PM
Jan 2020

You'll recall that Silverado was the Denver-based S&L that collapsed in 1988 - despite over $2 billion in assets - after Neil Bush steered hundreds of millions in loans to friends who (of course) never repaid.

Silverado's insolvency, conveniently enough, was declared just after the 1988 election - which Neil's father won.

Neil settled with the FDIC on charges of malfeasance for (drumroll, please)... $50,000. And most of that covered by his insurance.

Padoán similarly declared Vicentín bankrupt just after Argentina's election last year, in an attempt to spare Macri the political headache. Here's hoping they don't let this guy Padoán off as easily as Neil Bush was.

Judi Lynn

(160,217 posts)
3. Neil Bush was treated with kid gloves in that scandal, a real shame.
Sat Jan 25, 2020, 06:24 PM
Jan 2020

You'll remember how far the media went out of their way to represent Presidents Carter and Clinton's brothers as drooling halfwits, too, since they didn't have any children old enough to be involved in actual scandals! They also went far out of their way to avoid dwelling on any of the details of George H. W.'s other son, Jeb, and his Cuban exile friend, Miguel Recarey, even though Recarey was a reckless larcenist throughout, creating the country's largest Medicare theft up to that point.

I'm pretty sure you saw this but I'd love to leave the link for anyone who sees it who hasn't heard what havoc caused by these Bush sons and realize how their dad's power eased the way for them all to skate right past any fears of being harmed legally or politically:


POLITICS
SEPTEMBER 1, 1992
Family Value$
The inside story of how three of the Bush boys built private fortunes by trading on their father’s name, running with con men, lining their own pockets, and leaving financial ruin in their wake. A <I>Mother Jones</i> investigation.
STEPHEN PIZZO

https://www.motherjones.com/politics/1992/09/family-value/

It will be a horrendous crime if there won't be a sudden and swift round up and trial of Macri and his partners in a complex, cruel crime against of Argentina. It would mean he still has powerful friends in high places and the same thing could happen again when his allies regain control of the reins through treachery.

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